UNITED  STATES[TARIFF  COMMISSION 
WASHINGTON 


INFORMATION  CONCERNING 


The  Magnesite  Industry 


PRINTED  FOR  USE  OF 

COMMITTEE  ON  WAYS  AND  MEANS 
HOUSE  OF  REPRESENTATIVES 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 
1919 


UNITED  STATES  TARIFF  COMMISSION 

WASHINGTON 


INFORMATION  CONCERNING 

The  Magnesite  Industry 


PRINTED  FOR  USE  OF 

COMMITTEE  ON  WAYS  AND  MEANS 

HOUSE  OF  REPRESENTATIVES 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 
1919 


UNITED  STATES  TARIFF  COMMISSION. 

Office :  1322  New  York  Avenue,  Washington.  D.  C. 

COMMISSIONERS. 

F.  W.  TAUSSIG,  Chairman. 

THOMAS  WALKER  PAGE,  Vice  Chairman. 

DAVID  J.  LEWIS. 

WILLIAM  KENT. 

WILLIAM  S.  CULBERTSON. 

EDWARD  P.  COSTIGAN. 

WILLIAM  M.  STEUART,  Secretary. 


LETTER  OF  TRANSMITTAL. 


UNITED  STATES  TARIFF  COMMISSION, 

Washington,  June  11,  1919. 

The  Committee  on  Ways  and  Means  of  the  House  of  Representatives: 

I  have  the  honor  to  transmit  herewith,  in  accordance  with  your 
request,  information  compiled  by  the  United  States  Tariff  Commis- 
sion on  magnesite,  crude  and  calcined. 
Very  respectfully, 

THOMAS  WALKER  PAGE, 

Acting  Chairman. 


CONTENTS. 


Page. 

Introduction 7 

Summary  of  the  domestic  situation 7 

Market  grades  and  uses 8 

Substitutes 9 

Tariff  classifications 10 

Domestic  production 10 

Domestic  resources  and  localities  of  production 10 

Industrial  development 11 

Domestic  consumption 13 

Sources  of  domestic  supply 13 

Domestic  cost  of  production 13 

Foreign  production 14 

Foreign  resources  and  countries  of  largest  production 15 

Austria-Hungary 15 

Greece 16 

Canada 16 

Mexico 17 

Venezuela 17 

Competitive  conditions 17 

Dependence  on  transportation 17 

Quality  of  product 18 

Imports 19 

Countries  of  origin 19 

Quantities 20 

Revenue 20 

Prices .' 21 

Tariff  history 22 

Court  and  Treasury  decisions .*. 22 

Bibliography 23 

Producers  in  1918  and  character  of  product 23 

5 


THE  MAGNESITE  INDUSTRY. 


INTRODUCTION. 

Magnesite  is  a  natural  carbonate  of  magnesium.  When  pure  it 
contains  52.4  per  cent  carbon  dioxide  (CO2)  and  47.6  per  cent  mag- 
nesia (magnesium  oxide  MgO).  It  is  harder  and  header  than  lime- 
stone which  it  most  nearly  resembles.  Two  markedly  different 
natural  varieties  are  distinguished,  crystalline  and  massive. 

The  massive  is  a  ohalk-wnite,  compact,  fine-grained  variety  usually 
found  in  veins  or  masses  in  serpentine  rocks,  while  the  crystalline  is 
blue,  red,  and  gray,  medium  or  coarse  grained,  and  occurs  only  as 
masses  in  altered  limestone.  The  only  important  crystalline  deposits 
are  found  in  Austria-Hungary  (Styria),  Quebec,  and  Washington. 
Massive  magnesite  is  widely  distributed. 

Magnesitc  when  calcined  forms  a  highly  refractory  material  which 
has  no  thoroughly  satisfactory  substitute  in  the  open-hearth  process 
for  making  steel.  About  82  per  cent  of  the  domestic  consumption 
is  used  in  refractories,  15  per  cent  in  the  plastic  trade,  and  the 
remainder  is  required  in  minor  uses  in  chemical  industries  and 
medicines. 

SUMMARY  OF  THE  DOMESTIC  SITUATION. 

The  United  States  is  the  largest  consumer  of  magnesite  in  the 
world.  Its  consumption  in  1913  was  50  per  cent  of  the  total  output 
of  the  world.  Before  the  war,  fully  90  per  cent  of  the  domestic 
supply  was  imported.  Austria-Hungary  furnished  the  bulk  of  the 
material  required  by  the  steel  industry,  while  Grecian  deposits  sup- 
plied most  of  the  requirements  for  other  purposes.  The  only  do- 
mestic production  was  in  California,  where  it  was  consumed  locally. 

With  the  outbreak  of  the  war,  supplies  from  Austria  were  at  once 
cut  off  and,  after  1916,  those  from  Greece  were  greatly  curtailed. 
At  the  same  time  the  domestic  requirements  increased  greatly.  In 
1917,  the  domestic  consumption  was  over  355,000  tons,  valued  at 
more  than  $3,700,000.  Nearly  90  per  cent  of  the  supply  was  of  do- 
mestic origin.  A  great  new  industry  was  developed  in  Washington 
while  the  existing  industry  in  California  was  greatly  expanded.  Simi- 
larly fostered  by  the  restriction  of  ocean  shipment,  a  magnesite  in- 
dustry sprang  up  in  Quebec  and,  in  spite  of  the  inferior  quality  of 
the  product,  was  a  strong  competitor  of  the  western  magnesite  be- 
cause of  its  relative  cheapness  at  the  eastern  steel  furnaces. 

The  chief  handicap  of  the  domestic  magnesite  producer  is  the  long 
railroad  haul  from  the  mines  to  eastern  markets,  where  it  is  chiefly 
consumed.  Domestic  reserves  are  ample,  especiallv  in  Washington, 


8 


THE   MAGNESITE   INDUSTRY. 


where  more  than  7,000,000  short  tons  are  indicated  or  in  sight,  and 
they  have  been  actively  exploited  by  two  or  three  strong  companies 
and  several  small  operators. 

The  American  magnesite  is  purer  than  the  Austrian  material,  which, 
by  virtue  of  its  content  of  a  small  amount  of  iron  in  just  the  proper 
amount,  is  better  suited  by  nature  for  use  in  the  steel  industry. 
The  early  difficulties  encountered  in  the  use  of  domestic  material, 
however,  have  been  quite  satisfactorily  overcome.  The  lack  of  the 
desired  amount  of  iron  in  Washington  magnesite  is  made  up  by 
adding  iron  synthetically. 

With  the  return  of  normal  shipping  conditions,  the  American  mag- 
nesite industrj"  faces  the  prospect  of  a  serious  relapse — almost  to  the 
prewar  level.  Recently  developed  deposits  in  Venezuela  may  be 
expected  to  furnish  some  material  to  the  eastern  markets  in  com- 
petition with  that  from  Greece  and  Canada,  but  Austrian  magnesite 
will  dominate  the  market  if  delivered  at  anything  like  prewar  prices, 
which  were  as  low  at  the  Atlantic  seaboard,  practically  the  point 
of  consumption,  as  quotations  of  the  domestic  product  on  the  Pacific 
coast.  Under  these  conditions,  the  domestic  output  would  be 
restricted  to  the  markets  west  of  the  Mississippi  where  the  consump- 
tion is  comparatively  small.  The  precise  location  of  the  definitive 
line  is  dependent  upon  the  balance  of  ocean  freight  from  foreign 
countries  and  domestic  rail  tariffs  from  the  Pacific  coast,  but  the 
advantage  lies  with  the  foreign  producer,  due  to  the  concentration  of 
the  steel  industry  in  Pennsylvania,  Illinois,  and  neighboring  localities. 

Summary  table. 


Calendar  year. 

Domestic 
produc- 
tion 
(short 
tons). 

Imports 
f  or  con- 
sumption 
(short 
tons).1 

Domestic 
exports. 

Ratio  of 
imports  to 
domestic 
produc- 
tion, 
(percent) 

Value 
(imports  for 
consumption).1 

Amount 
of  duty. 

Value 
per  unit 
of  quan- 
tity.z 

1910 

12,443 

323,  654 

None... 

2,610 

$1,542,800.00 

Free... 

$6.25 

1911  

9,375 

257,  124 

.do  

2,740 

1,185,867.00 

...do  

5.86 

1912 

10  512 

268  408 

do    . 

2,550 

1,369  665.00 

do... 

5.83 

1913 

9  032 

347,  426 

do... 

4,020 

1,757,476.00 

.do.... 

6.40 

1914  

11,293 

2.56,987 

.do.... 

2,280 

1,377,871.00 

...do  

•     4.10 

1915 

30  499 

102  913 

do 

337 

487,211.00 

.do... 

5.12 

1916  

154,974 

93,885 

...do  

61 

838,630.00 

...do  

8.42 

1917  

316,  &38 

38,  208 

.  .do.... 

12 

464,706.00 

...do  

7.66 

1918 

225  000 

41  148 

do 

18 

927,255.00 

19.60 

1  Quantity  of  imports  of  calcined  have  been  doubled  (assuming  a  50  per  cent  loss  in  weight  because  of  the 
calcining  operation)  and  added  to  quantity  of  crude..   Values  of  calcined  simply  added  to  those  of  crude 
n  this  table. 

2  Based  on  imports  of  crude  only. 

MARKET  GRADES  AND  USES. 

Magnesite  is  marketed  either  (1)  crude  or  (2)  calcined.  Crude 
magnesite  is  the  material  as  mined  except  that  it  may  be  sorted  or 
undergo  a  simple  cleaning  operation  to  remove  admixed  rock  waste. 
A  very  small  use  of  the  crude  material  is  as  a  substitute  for  barite 
in  paint  manufacture.  Some  is  made  into  magnesium  salts;  but 
practically  all  the  product  is  calcined;  yielding,  according  to  the 
temperature,  either  caustic  or  clead-burnecl  magnesia. 

(«•)  Caustic  maqnesia  (moderate  temperatures)  in  which  most  of 
the  Carbon  dioxide  is  driven  off,  but  from  3  to  8  per  cent  is  inten- 


THE   MAGNESITE   INDUSTKY.  9 

tionally  loft  in  the  residue.  In  this  form  the  residual  magnesia 
reacts  readily  with  water  and  carbon  dioxide  in  the  air  (compare 
quicklime)  and  readily  combines  with  various  acids  for  the  manu- 
facture of  salts.  Mixed  with  magnesium  chloride  (which  may  be 
made  from  magnosite  and  muriatic  acid,  but  which  is  generally 
derived  as  a  by-product  in  salt  manufacture),  caustic  magnesia  is 
made  into  Sorel  ("  oxy  chloride  ")  cement.  This  mixture,  generally 
modified  by  the  addition  of  various  filler  materials  (wood-flour, 
cork,  talc,  silica,  asbestos,  clay,  marble  dust,  sand,  etc.)  together 
with  suitable  coloring  matter  is  sold  under  various  trade  names. 
It  is  one  of  the  best  floorings.  The  use  of  magnesite  cement  in  floors 
and  as  stucco  and  wall  or  outside  plaster  is  gaining  importance. 
It  sets  much  quicker  than  Portland  cement  and  has  the  peculiar 
advantage  of  great  resiliency.  As  the  determining  factor  in  ordi- 
nary floors  is  the  deflection  under  load,  the  large  deflections  possible 
with  this  material  permit  lighter  and  cheaper  building  frame  con- 
struction. Calcined  magnesia  is  also  used  in  making  magnesium 
bisulphite  for  disintegrating  wood  pulp  in  paper  making. 

(6)  Dead-burned  magnesia  (heated  to  incipient  fusion)  in  which 
the  last  traces  of  carbon  dioxide  have  been  removed  and  the  material 
heated  to  the  point  of  incipient  fusion.  In  this  state,  it  will  not 
slake  or  combine  with  chemicals.  It  is  largely  used  for  basic  open- 
hearth  steel  furnaces,  converters,  and  kilns  for  sulphuric  acid  (pyrites) 
burning,  and  in  electric  furnaces.  Dead-burned  magnesia  comes  in 
the  form  of  brick  and  grains. 

(c)  Carbon  dioxide  may  be  saved,  but  only  when  caustic  product 
is  to  be  made.     The  character  of  the  calcination  for  the  production 
of  dead-burned  magnesite  is  not  suited  to  the  recovery  of  gas. 

(d)  Metallic  magnesium,  magnesium  oxide  and  sails  are  rarely  made 
from  magnesite.     In  most  cases  a  supply  of  by-product  magnesium 
chloride  is  more  cheaply  available  and  the  use  of  magnesite  for  these 
purposes  is  exceptional.     Magnesia  for  chemical  and  medicinal  use 
as  well  as  pipe  covering  material,  light  carbonate  and  other  products 
come  in  this  class. 

SUBSTITUTES.1 

High  magnesian  dolomite  is  a  material  that  has  proved  to  be  a 
fairly  satisfactory  substitute  for  magnesite  in  many  classes  of  metal- 
lurgical work.  It  is  much  cheaper  and  far  more  widely  distributed, 
but  is  not  so  refractory.  Slight  changes  (high  lime  slags)  in  furnace 
processes  are  often  necessary  in  using  this  material.  Locally,  sor7 
pentino  rocks  are  possible  sources  of  magnesium  and  its  compounds 
while  magnesium  salts  are  by-products  of  the  common  salt  and 
potash  salt  industries.  Bauxite  is  another  basic  refractory  material 
and  may  take  the  place  of  magnesite  in  certain  classes  of  metallurgi- 
cal work.  Patented  products  consisting  of  dolomite  treated  with 
furnace  dust  and  roasted — -"kendymag,"  "syndolag,"  and  "magni- 
brent" — have  come  into  more  or  less  satisfactory  use  at  steel  plants. 

1  In  1913,  178,530  tons  of  calcined  magnesite  were  consumed  in  the  United  States;  in  1917,  177,524.    For 
the  large  increase  in  steel  made  in  1917  over  1913, the  difference  was  largely  made  up  by  use  of  dolomite. 

128895—19 2 


10 


THE   MAGNESITE  INDUSTRY. 


TARIFF  CLASSIFICATIONS. 


Both  causticjand£dead-burned  magnesite  are  included  as  "calcined" 
not  purified  and  are  classed  with  crude  magnesite  under  paragraph 
539  on  the  free  list  (act  of  1913).  Similar  materials  are  magnesite 
brick  (par.  71)  which  comes  under  other  refractories  and  differs  from 
dead-burned  magnesite  only  in  having  been  molded  into  definite 
forms  subsequent  to  calcination. 

In  the  chemical  schedule  (par.  42)  "magnesia:  Calcined,  and  car- 
bonate of,  precipitated"  are  listed  as  dutiable,  while  conceivably 
these  products  accord  closely  in  chemical  composition  with  calcined 
and  crude  magnesite.  The  intent  of  the  act  is  clear  in  that  they  are 
(generally  purer)  products  produced  by  chemical  processes  from 
magnesium  salts,  especially  those  from  Stassfurt,  Germany. 

DOMESTIC  PRODUCTION. 

The  maximum|domestic  production  of  magnesite  was  in  1917  when 
the  total  output  amounted  to  316,838  short  tons  and  was  valued  at 
$2,899,818  at  the  mines.  The  1918  production  was  on  a  somewhat 
reduced  scale  due  to  competition  from  Canada,  and  a  more  general 
use  of  substitutes  (notably  burnt  dolomite  in  some  of  the  eastern 
metallurgical  plants  and  even  in  the  paper  trade). 

Magnesite  has  been  produced  in  the  United  States  since  1891. 
Prior  to  the  outbreak  of  the  European  war,  California  was  the  only 
producing  State.  The  total  output,  averaging  less  than  10,000  tons, 
was  consumed  locally,  chiefly  in  the  manufacture  of  paper.  In 
1913  and  1914  a  small  amount  was  taken  by  makers  of  stucco  and 
Sorel  cement,  especially  for  use  in  the  buildings  of  the  Panama 
Pacific  Exposition. 

The  first  magnesite  produced  in  the  State  of  Washington  was 
715  tons  mined  in  December,  1916.  In  1917  the  State  yielded  105,000 
tons  and  the  estimated  production  for  1918  indicates  that  this  State 
will'  show  a  larger  output  than  California. 

Production  in  United  States.1 
[From  Mineral  Resources,  U.  S.  Geological  Surrey .1 


Quantity     | 
(short  tons).  : 

Value. 

Quantity 
(short  tons). 

Value. 

1900 

2,252  j 

S19,  333 

1913.  .  . 

9,632 

$77,  056 

1904 

2,850  1 

9,298 

i  1914  

11,293 

124,223 

1909 

9,  4fi.5 

37,  860 

1915  

30,499 

274,491 

1910 

12,^43 

74,  658 

1916  

154,97! 

1,393,693 

1911 

9,375 

75,000 

!  1917  

316,  83S 

2,899,818 

1912 

10  512 

81,096 

1  1918  

2  225,000 

i 

1  Prior  to  December,  1916,  California  was  the  only  producing  State. 

2  Estimated. 

DOMESTIC    RESOURCES    AND    LOCALITIES    OF    PRODUCTION. 

Magnesite  occurs  in  commercial  quantities  in  California,  Nevada, 
and  Washington.  Reports  of  workable  deposits  in  other  States 
have  not  been  verified. 


THE   MAGXESITE  INDUSTKY. 


11 


Domestic  production  by  Stolen. 

[From  Mineral  Resources,  U.  S.  Geological  Survey.] 
MAGNESITE,  CRUDE  OR  CALCINED,  NOT  PURIFIED.i 


18 

16 

18 

17 

States.    • 

Quantity 
(short  tons). 

Value. 

Quantity 
(short  tons). 

Value. 

California  .  .  . 

154  259 

$1  388  331 

211  603 

$2  116  f,30 

Washington  

715 

5,  302 

105,  175 

783,188 

Total  

154,  974 

1,393,693 

316,838 

2,  899,  818 

•     !  Prior  to  1916  California  was  the  only  producer. 

California.1 — Magnesite  deposits  occur  in  numerous  localities 
throughout  the  Coast  Range  and  on  the  west  slope  of  the  Sierras, 
from  Mendocino  and  Placer  Counties  on  the  north  to  Riverside 
County  on  the  south.  In  nine  counties  the  deposits  are  large  \vhile 
in  four  counties  only  small  deposits  have  been  found.  In  1917,  63 
per  cent  of  the  crude  magnesite  produced  in  the  State  came  from 
Tulare  County.  The  rest  of  the  production  came  from  widely 
separated  deposits. 

With  one  exception  (Bissell,  Kern  County)  all  the  California 
magnesite  deposits  occur  as  irregular  veins,  lenses,  masses,  or  stock 
work  in  serpentine  rock.  In  a  few  places  the  veins  or  masses  are 
20  feet  or  more  in  width  but  more  generally  the  veins  are  narrow  and 
separate  lenses  are  irregularly  disposed. 

Washington.2 — Deposits  of  crystalline  magnesite  have  been  found 
in  several  sections  in  the  northeastern  part  of  Washington  (Stevens 
County)  about  60  miles  north  of  Spokane.  The  Washington  magne- 
site differs  markedly  in  character  from  the  California  material  and 
is  found  in  large  masses.  The  larger  deposits  are  200  or  more  feet 
thick  and  1,000  or  more  feet  long.  Estimates  of  1,000,000  tons, 
each  within  100  feet  of  the  surface,  are  reasonable  for  at  least  three 
of  the  deposits. 

Most  of  the  Washington  magnesite  is  colored,  generally  rather 
dark,  and  its  grade  must  be  determined  by  chemical  analysis,  as  it 
can  not  be  judged  by  its  appearance.3  It  is  considered  better  for 
refractory  purposes  than  the  California  grade,  but  the  latter  is  pre- 
ferred for  building  purposes. 

A  plant  for  making  magnesite  brick  was  built  in  Washington  in 
1917. 

INDUSTRIAL   DEVELOPMENT. 

At  the  outbreak  of  the  war  the  California  industry  was  established 
quite  firmly  on  the  basis  of  medium-scale  production  and  simple 
marketing  systems,  largely  contractual.  Since  the  freight  rate  on 
calcined  magnesite  is  the  same  as  that  on  crude  and  the  product 
weighs  only  about  one-half  as  much,  practically  all  the  ore  was 
calcined  at  the  mine.  Various  types  of  kilns  were  in  operation. 

1  For  further  description  see  Bull.  355,  Mapnesite  Deposits  of  California,  F.  I..  Hess  191S;  Bull.  540-s. 
Late  Developments  of  Mapnesiie  Deposits  in  California,  by  II.  S.  Gale;  and  recent  chapters  of  Mineral 
Resources,  t".  S.  Geological  Survey. 

2  A  description  of  mau'nesitc  deposits  in  Washington  was  published  in  the  Kng.  and  Min.  Jour.,  Apr.  13, 
1918:  also  in  Mineral  Resources  (1J17),  U.  S.  Geolosri'-al  Survey. 

8  Letter  from  H.  F.  Wiorum  (Aux.  File)  states  "Washington  caustic"  cream-white. 


12  THE   MAGNESITE  INDTJSTEY. 

Most  of  them  were  of  the  vertical  type,  similar  to  those  used  for 
making  quicklime — inexpensive  to  build,  but  rather  wasteful  of  fuel. 
Crude  oil  was  used  at  many  plants,  but  in  the  more  isolated  sections 
wood  was  cheaper.  The  character  of  the  California  deposits  was 
such  that  extensive  installation  of  equipment  was  not  warranted. 
Single  mines  rarely  remained  in  steady  operation  for  any  great 
length  of  time  and  no  very  large  reserves  were  proved  in  advance  of 
mining.  At  the  end  of  1913  there  was  only  one  producing  company; 
in  the  whole  year  only  three  companies  had  operated.  Early  in  1914, 
however,  several  old  mines  were  reopened  and  a  few  new  producers 
came  in.  The  only  large  producer  at  any  time  before  the  war  was 
the  Tulare  Mining  Co.,  and  almost  its  entire  product  was  contracted 
for  by  the  Crown  Willamette  Paper  Co.  Only  a  few  hundred  tons 
surplus  came  on  the  open  market.  This  was  sold  to  grinders  in  San 
Francisco,  who  retailed  it  to  consumers.  The  more  or  less  sporadic 
output  of  the  smaller  organizations — none  of  whom  could  have 
guaranteed  an  output  of  500  tons  a  month — came  on  the  market 
almost  wholly  in  granular  form  ('' caustic")  and  in  bulk. 

War  stimulation  of  the  industry  came  in  the  latter  part  of  1914. 
It  affected  the  larger  properties  first,  but  soon  there  was  a  rapid 
development  of  new  producers.  Mines,  20  miles  from  the  railroad, 
that  had  never  been  commercially  considered,  were  opened  up  and 
contributed  to  the  output.  One  producer  installed  one  and  later 
another  large  rotary  kiln  similar  to  those  employed  for  cement 
burning  and  improved  its  equipment  generally.  Broadly  speaking, 
however,  the  California  industry  responded  to  the  increased  demand 
for  its  product  by  multiplying  the  number  of  producers — 16  of 
whom  reported  production  in  1915  1 — rather  than  by  greatly  expand- 
ing individual  operations. 

In  Washington,  however,  the  somewhat  greater  inaccessibility  of 
the  deposits  and  their  much  greater  indicated  extent  offered  more 
attractions  to  large  capital  than  to  individual  operations.  The  larg- 
est producer  in  the  field  is  the  Northwest  Magnesite  Co.,  which 
claims  to  have  expended  about  $1,000,000  on  equipment  and  devel- 
oping work. 

Only  four  companies,  but  two  of  which  are  now  (1918-19)  operat- 
ing, took  part  in  the  development  of  the  Washington  industry.  The 
extraordinary  progress  made  in  the  first  two  years  of  operation  is 
ample  evidence  of  their  enterprise  and  financial  strength.  A  large 
part  of  the  work  done  by  these  companies  was  purely  development. 
The  deposits  are  several  miles  from  a  railroad  and  the  early  opera- 
tions involved  hauling  by  wagon  and  motor  truck.  A  year  after 
opening  their  major  deposits  the  largest  producer  completed  a 
5-mile  aerial  tram  from  the  quarry  to  its  new  calcining  plant,  where 
three  rotary  cement  kilns,  125  feet  long  by  7^  feet  diameter,  are 
installed.  Both  quarrying  and  calcining  operations  are  fully  equipped 
with  modern  machinery  and  labor-saving  devices.  The  management 
is  evidently  able  and  aggressive,  and  backed  by  ample  capital.  The 
latest  development  is  the  addition  of  iron  ore,  in  correct  proportions, 
at  the  calcining  plant  for  the  production  of  "ferromagnesite,"  of 
similar  composition  to  the  Austrian  material,  and  that  is  claimed  to 
be  quite  as  satisfactory  as  the  Aust.ian  product  for  refractory 
purposes. 


Sixtv-fivc  in  1917. 


THE   MAGNESITE  INDUSTRY.  13 

DOMESTIC    CONSUMPTION. 

The  consumption  of  magnesite  shows  a  marked  increase,  and  there 
is  promise  of  a  still  further  development  in  the  next  few  years.  In 
1917  the  apparent  consumption,  expressed  as  crude,  was  over  355,000 
short  tons,  or  about  25  per  cent  more  than  the  consumption  just 
before  the  war.  The  United  States  is  the  largest  consumer  of  mag- 
nesite, and  in  1913  its  requirements  amounted  to  over  65  percent  of 
the  total  world  consumption,  if  500,000  tons  *  is  considered  as  the 
world  output  for  1913.  This  quantity  includes  only  exports  from 
Austria-Hungary,  and  it  is  presumed  that  Germany,  the  second  larg- 
est steel  producer,  must  have  used  150,000  to  200,000  tons  of  magne- 
site, and  that  the  world's  output  was  nearer  700,000  tons.  If  this 
is  true,  the  United  States  used  about  50  per  cent  of  the  world's  pro- 
duction of  magnesite. 

A  recent  estimate  of  the  character  of  the  consumption  is  that  82 
per  cent  is  used,  as  refractory,  15  per  cent  in  the  plastic  trac'e,  and  3 
per  cent  for  chemical  and  medicinal  purposes.  The  open-hearth  steel 
industry  is  the  most  important  factor  in  the  magnesite  situation. 
"While  this  industry  is  not  wholly  dependent  on  magnesite  supplies, 
it  is  largely  so.  Ihe  partial  substitution  of  dolomite,  however,  has 
come  to  stay  and  the  amount  of  magnesite  consumed  per  ton  of  basic 
open-hearth  steel,  which  formerly  was  6  to  14  pounds  (dead  burned), 
has  lately  been  cut  almost  in  half.  The  total  amount  used  by  the 
steel  industry  has  not  decreased  on  account  of  the  much  greater 
output  of  basic  open-hearth  steel.  The  use  of  magnesite  in  building 
trades  has  also  increased  to  a  marked  extent. 

SOURCES  OF  DOMESTIC  SUPPLY. 

Over  90  per  cent  of  the  domestic  supply  of  magnesite  before  the 
war  was  imported.  The  preponderant  supply — and  practically  all 
that  used  in  steel  manufacture — was  derived  from  Austria-Hungary. 
No  other  foreign  sources  of  large  supply  of  a  satisfactory  quality  of 
material  existed.  The  Grecian  deposits  furnished  only  "caustic" 
for  use  in  plastic  grades  and  in  the  manufacture  of  chemicals  and 
heat-insulating  material. 

In  1917,  however,  the  proportions  were  reversed  and  over  90  per 
cent  of  the  domestic  supply  came  from  American  deposits.  The 
tendency  in  1918,  however,  was  toward  largely  increased  importa- 
tions of  Canadian  material.  If  there  had  been  no  restrictions  on 
ocean  shipments  of  this  material  (in  the  interest  of  ship  saving),  there 
would  also  have  been  large  importations  fiom  Venezuela. 

DOMESTIC    COSTS    OF    PRODUCTION.2 

Crude. — At  present  in  the  State  of  California,  magnesite  of  superior 
quality  can  not  be  delivered  f.  o.  b.  railroad  point  for  less  than  $8  a 
ton  and  allow  any  margin  of  profit  to  the  operator.  Average  cost  of 
mining  is  $5  a  ton,  delivery  costs  $1,  and  when  royalties,  overhead 
and  general  expense,  equipment,  etc.,  are  considered,  the  margin  of 
profit  is  low  at  the  above  figure.  Washington  crude  is  offered  f.  o.  b. 
railroad  cars,  1919,  at  84.50  per  ton. 


1  Private  communication  from  I".  S.  Geological  Survey..  2  About  September,  191$. 


14  THE  MAGNESITE  INDUSTET. 

Calcined. — In  former  years  the  bulk  of  shipments  from  California, 
have  been  crude,  but  now  there  are  a  number  of  up-to-date  calcining 
plants  in  California  that  are  sending  finished  product  to  eastern 
market.  Cost  of  calcining  at  present  price  of  oil  and  labor  was  about 
$4.50,  using  rotary  kilns.  In  upright  or  vertical  kilns  using  coke  or 
oil,  the  cost  ranges  from  $6  to  $7  per  ton  calcined.1  Sworn  statements 
of  domestic  costs  appear  in  auxiliary  file. 

Freight. — Present  transcontinental  freight  rate  on  magnesite  is  the 
same  for  crude  or  calcined  material.  To  Chicago  or  group  D  points 
(roughly  all  the  territory  west  of  the  Mississippi  and  inclusive  of  the 
States  of  Illinois  and  Indiana)  is  $10  per  ton  in  carload  lots.  To  Pitts- 
burgh, Philadelphia,  and  neighboring  territory  the  rate  is  $11,2  while 
to  New  York  and  far  eastern  points,  S12.50.2  On  account  of  the  low 
value  of  the  material  it  is  probable  that  freights  will  be  reduced  if 
it  shall  be  found  necessary  to  meet  European  competition. 

FOREIGN  PRODUCTION. 

Developed  magnesite  deposits  outside  of  the  United  States  that 
have  been  productive  are  located  in  Quebec  and  British  Columbia 
(Canada);  Santa  Margarita  Island,  Lower  California;  Venezuela; 
Austria-Hungary;  Greece;  Norway;  Spain;  Germany;  Russia;  Mace- 
donia ;  Transvaal ;  and  India.  Deposits,  some  of  which  have  produced 
small  amounts,  are  located  in  Ontario  and  New  Brunswick,  Canada; 
Cedros  Island,  Lower  California;  Asia  Minor;  Sweden;  Rhodesia; 
Portuguese  Wesi  Africa;  Australia;  China;  Japan;  Tasmania;  and 
New  Caledonia.  The  largest  foreign  producer  has  been  Austria- 
Hungary,  with  Greece  second.  The  production  of  other  countries 
was  of  minor  importance  until  the  war  resulted  in  cutting  off  the 
Austrian  supplies  from  all  but  the  Central  Powers.  The  cutting  off 
of  these  supplies  caused  stimulation  chiefly  in  the  North  American 
output.  There  is  little  reason  to  expect  that  there  will  be  any  marked 
shift  in  the  important  sources  of  supply  although  the  relative  import- 
ance of  the  major  producers  may  undergo  considerable  readjustment. 

Magnesite  reserves  of  the  world. 
[Communication  from  Mineral  Resources  Division,  United  States  Geological  Survey.] 

Short  tons. 

Austria-Hungary 120,  000,  000 

Greece ^. 5,  500,  000 

Washington 7,  000,  000 

California 750,  000 

Venezuela  (Margarita  Island; 33,  200,  000 

The  indicated  reserves  of  the  two  American  producing  States  are 
included  for  comparison.  The  reserves  in  other  -countries  have  not 
been  measured  and  no  even  approximately  accurate  estimate  can 
be  made  as  to  the  total  resources  of  the  world. 

i  Burning  $9  to  $10  per  ton,  American  Mineral  Products  Co.,  cost,  1919  (Washington). 
»  >*ew  rates,  June  25,  1918,  $15.60+47  cents  per  short  ton,  Spokane  to  Atlantic  points;  S13.SO+41  cents 
to  Pittsburgh. 
3  Caracristi,  Chas.  F.  Z.,  Eng.  and  Mg.  Jl.,  107  (1919),  p.  645. 


THE   MAGNESITE   INDUSTRY. 


15 


FOREIGN   RESOURCES    AND    COUNTRIES    OF    LARGEST   PRODUCTION.1 

The  foreign  countries  that  enter  into  the  American  magnesite 
situation  are  Canada,  Austria-Hungary,  Greece,  Mexico,  and  Vene- 
zuela. Small  exports  have  been  made  from  countries  other  than 
those  named,  notably  Norway  (via  Scotland)  but  they  are  not  of 
sufficient  importance  to  warrant  discussion  with  reference  to  the 
United  States.  The  production  of  the  more  important  countries  are 
given  in  the  following  table : 

Production  in  principal  foreign  countries.1 
[In  metric  tons.] 


Austria-Hungary.2 

Greece. 

India. 

Spain.* 

Crude. 

Calcined. 

Crude. 

Calcined. 

Crude. 

1903... 

69,058 
53,  781 
92,359 
87,  765 
113,695 
87,049 
125,666 
182,911 
<  182,  911 
171,196 
200,947 

28,415 
9,133 
37,063 
40,584 
55,816 
63,079 
56,  797 
18,073 
86,956 
106,338 
98,517 
136,  701 
159,981 
199,484 

838 
1,193 

1904  

1905  

2,645 
1,861 
188 
7,655 
199 
5,264 
3,546 
15,626 
16,468 
1,706 
7,570 
17,924 

1,446 
1,335 
1,954 

1906                                            

1907  

452 
212 
1,027 
341 

77 

1908 

1909            

16,609 
19,982 
27,  530 
33,848 
31,815 
28,  563 
<  28,  563 
27,  548 
69,837 

1910  

1911                   .       .       .              

1912  

1,480 
958 
583 
1,400 

1913                                                .              .   . 

1914  

1915 

1916  

1917  

i 

i  

1  Mineral  Industry. 

2  Exports. 

8  Redlich.  Fortsche  d.  Min.  4,  pp.  9-42.  1914.    Estad.  Mineraria  de  Espana  1912-1915. 
<Sic. 

Austria- Hungary. — The  magnesite  deposits  of  Austria-Hungary 
follow  a  belt  that  extends  in  a  northeast  line  across  the  two  countries. 
The  workable  deposits  are  in  the  form  of  lenses.  Only  10  or  12  of 
these  lenses  are  of  sufficient  size  to  be  worked  but  several  of  these 
are  of  large  size.  The  largest  deposit  in  the  group  is  near  the  town 
of  Veitch.  It  has  been  worked  longer  than  any  of  the  others  and  a 
huge  quarry  is  located  there.  The  magnesite  forms  an  isolated 
lens  in  a  high  hill  surrounded  by  barren  rock.  From  the  top  to  the 
bottom  of  the  workings  is  700  to  800  feet.  The  quarry  face  is  carrird 
in  benches  about  50  leet  high.  Another  large  deposit  *in  Austria 
is  at  Radentheim  on  the  north  side  of  the  Millstatter  Alps,  where  the 
material  is  quarried  by  great  cuts  and  lowered  by  gravity  to  rotary 
kilns.  This  deposit  was  owned  by  an  American  company  and  much 
of  the  output  came  to  United  States  ports.  Both  grain  magnesite 
and  magnesite  brick  were  produced  very  near  the  mine.  Another 
American  company  operated  in  Austria-Hungary  before  the  war, 
but  both  properties  were  taken  over  by  the  Government  and  op- 
erated, at  least  for  a  time,  by  Russian  prisoners.  Two  of  the  larger 
local  companies  sold  all  their  export  product  through  a  German  firm. 


1  Much  valuable  data  in  repaid  to  the  deposits  and  the  industry  in  the  several  countries  is  avr i!nUc  in 
the  Auxiliary  File  of  the  Tarifl'  Commission  and  in  "Political  and  Commercial  Control,"  Bull.  3,  U .  S.  Bureau 
of  Mines,  by  R.  \V.  Stone. 


16  THE   MAGNESITE  INDUSTKY. 

Because  of  the  huge  size  of  the  Austrian  and  Hungarian  deposits^ 
and  their  comparative  accessibility  and  the  low  wages,1  the  product 
can  be  marketed  cheaper  than  any  other  known  supplies.  Even  the 
best  deposits  in  these  countries  contain  a  large  quantity  of  dolomite 
and  quartz  gangue  that  must  be  sorted  out  by  hand.  But  the 
extraordinary  opportunity  for  cheap  mining  and  the  ease  with  which 
it  may  be  calcined  to  a  dead-burned  state,  give  these  deposits  a 
remarkable  advantage  over  those  of  any  other  part  of  the  world. 

American  capital  is  invested  in  the  Austrian  industry  (to  an  extent 
not  ascertained). 

Greece. — Grecian  magnesite  is  of  the  noncrystalline  or  amorphous 
type  like  that  of  California.  The  most  important  deposits  are  those 
of  the  sland  of  Euboea  where  they  are  all  found  close  to  the  seashore. 
Cheap  water  transportation  to  all  the  principal  consuming  markets 
is  available  (under  normal  conditions).  The  largest  veins  are  50 
feet  or  more  wide  and  several  hundred  feet  long.2  They  are  mined 
by  open  cuts  and  a  very  pure  product  is  obtained  by  cobbing. 

In  1914,  the  production  was  mainh7  in  the  hands  of  three  companies 
and  practically  all  the  product  is  distributed  through  one  of  them — • 
a  British  company.  Less  than  2  per  cent  of  the  ore  is  dead-burned 
on  the  island  and  only  about  one-third  of  it  is  calcined  before  ship- 
ment. Before  the  war,  much  of  the  crude  material  was  shipped 
to  northern  Germany  or  Holland  where  it  was  calcined  and,  in  part, 

§  round  and  packed  for  reexpoit,  as  prepared  "  caustic''  for  making 
orel  cement.  There  has  been  some  criticism  of  the  Grecian  caustic 
as  delivered  in  the  United  States  on  account  of  its  lack  01  amiormity. 
There  is  no  reason  why  it  should  not  keep  practically  indefinitely 
when  properly  packed.  Magnesite  from  Greece  and  California  are 
practically  identical,  but  previous  to  1915  the  California  material 
could  not  compete  with  the  Grecian  ore,  much  of  which  came  in 
as  ballast,  because  of  high  transcontinental  freight. 

Canada.3 — -The  only  important  magnesite-producing  district  in  Can- 
ada is  Grenville,  Quebec.  Many  other  occurrences  are  reported. 
There  are  deposits  of  considerable  extent  in  various  parts  of  British 
Columbia,  but,  on  account  of  the  cost  of  transportation,  are  not 
workable  at  the  present  time. 

The  magnesite  in  the  Quebec  deposits  is  mixed  with  dolomite  and 
serpentine,  and  the  product  invariably  is  high  in  lime.  However, 
they  have  an  advantage  over  the  American  deposits  on  account  of 
their  location  close  to  centers  of  consumption,  and  increasing  amounts 
are  imported  into  the  United  States  at  lake  ports  and  along  the  St. 
Lawrence.  The  Quebec  quarry  deposits  are  also  cheaper  to  mine 
than  those  of  California.  The  Canadian  geological  survey  reported 
in  March,  1917,  that  the  cost  of  Grenville  magnesite  laid  down  in  the 
principal  markets  was  from  one-half  to  two-thirds  that  of  the  Cali- 
fornia product  (presumably  referring  to  crude).  This  advantage 
was  expected  to  be  further  improved  by  construction  of  tramways 
from  the  deposits  to  the  railroad.  Canadian  material  can  not  be 
used  for  the  manufacture  of  the  best  magnesite  brick.  Material  for 
brickmaking  must  be  rigidly  limited  as  to  lime  content  (6  per  cent) 

1  Austrian  women,  at  20  cents  per  day  (1918)  and  men  at  40  to  50  cents  per  day  are  employed. 
J  Veins  of  this  si/.e  not  common,  however. 

3Canadi(  n  deposits  are  fully  described  by  Wilson:  Mapnesite  Deposits  of  the  Grenville  District.    Cana- 
dian Depa  tmert  of  Mines,  Alemoir  98. 


THE  MAGNESITB  INDUSTRY.  17 

and  silicon  content  (7  per  cent).  The  Canadian  material  is  suitable, 
in  the  main,  only  for  grain  manufacture  (furnace  bottoms). 

Mexico. — On  the  island  of  Santa  Margarita,  in  Magdalena  Bay, 
there  are  extensive  deposits  from  which  exports  have  been  made  to 
the  United  States.  It  is  a  mountainous  island  cut  up  by  canyons  in 
which  massive  magnesite  several  feet  thick  is  exposed.  Boulders  of 
the  material  strew  the  stream  beds.  Hundreds  of  thousands  of  tons 
are  said  to  be  in  sight,  and  large  quantities  can  be  obtained  with  no 
expense  for  mining,  requiring  only  to  be  broken  up  for  shipment. 
Some  of  this  material  was  being  calcined  in  California  in  1917,  but 
the  boat  that  carried  it  was  diverted  to  other  uses  by  the  United 
States  Government.  The  material  is  exceptionally  pure,  and  the 
operations  were  conducted  by  Americans. 

Venezuela. — Large  deposits  of  the  massive  or  California  type  are 
found  on  Margarita  Island,  off  the  coast  of  Venezuela.  In  1915,  500 
tons  were  exported  to  the  United  States.  During  most  of  the  year 
the  United  States  Shipping  Board  refused  to  grant  a  license  for  fur- 
ther shipments.  Mines  are  developed  sufficiently  to  produce  2,000 
tons  monthly  of  very  high-grade  material.  During  1917  the  output 
was  about  10  tons  a  day  and  brought  an  average  of  $25  a  ton,  of 
which  $19.50  was  paid  out  for  freight.  The  properties  are  operated 
by  residents  of  California. 

COMPETITIVE  CONDITIONS. 

DEPENDENCE    ON    TRANSPORTATION. 

The  important  feature  of  the  magnesite  industry  is  its  absolute 
dependence  on  cheap  transportation  for  the  successful  exploitation 
of  its  product.  Carbonic-acid  gas  bottlers  were  forced  to  resort  to 
limestone  in  place  of  magnesite  in  California,  largely  because  freight 
from  mine  and  quarry  to  manufacturing  plant  more  than  offset  the 
advantages  of  the  richer  (in  gas)  material.  For  this  reason  ship- 
ments of  crude  are  restricted  to  very  short  hauls.  Crude  has,  in  fact, 
almost  wholly  disappeared  from  the  city  markets.  The  sudden  in- 
crease in  production  in  1915  resulted  in  some  resumption  of  shipments 
of  crude  magnesite  from  the  mines,  but  these  ceased  as  soon  as  kilns 
could  be  constructed  at  the  new  mines. 

The  freight  rates  by  rail  from  San  Francisco  to  Chicago  just  before 
the  war  were  $10  a  ton;  to  Illinois  and  Ohio  points,  $11;  and  to 
Pittsburgh  and  beyond,  $12.  The  average  price  of  domestic  crude 
in  the  San  Francisco  market  was  about  $8  per  ton.  The  average  im- 
port valuation  of  Grecian  magnesite  (which  was  more  strictly  com- 
petitive with  the  California  product  than  the  Austrian)  was  $7  to  88 
per  ton  on  board  steamer  in  New  York.  Under  free  competition  the 
definitive  line  of  equal  price  was  invariably  west  of  the  Mississippi 
River.  Since  the  largest  markets  are  in  the  Eastern  States  the 
domestic  output  was  restricted  to  the  rather  limited  local  market  in 
California  on  a  purely  cost  basis.  Calcined  (not  ground)  Euboean 
(Grecian)  magnesite  was  usually  sold  in  New  York  cheaper  than  was 
similar  material  at  the  mines  in  California.  The  competitive  status 
of  Austrian  supplies  was  also  dependent  on  the  freight,  since  the  dead- 
burned  product  in  Now  York  was  even  cheaper  than  Grecian 
"caustic." 


18  THE   MAGNESITE  INDUSTKY. 

A  freight  rate  of  $4  a  ton  from  San  Francisco  to  points  on  the 
Atlantic  seaboard  through  the  Panama  Canal  was  quoted  when  the 
canal  was  first  opened,  but  was  later  increased  to  $7  as  the  scarcity  of 
bottoms  became  apparent.  Eastbound  magnesite,  however,  was 
never  sought  by  carriers. 

When  tne  supplies  of  Austrian  magnesite  were  finally  cut  off  the 
California  producers  became  a  factor  in  the  eastern  market  and  for 
a  time  were  practically  free  from  outside  competition.  Later,  how- 
ever, Canadian  deposits  were  developed,  and  although  the  material 
contained  much  more  lime  than  the  domestic  product  and  was  conse- 
quently less  desirable  for  open-hearth  steel  production,  it  was  so 
much  cheaper  because  of  the  relatively  short  haul  that  it  became  an 
important  rival  of  the  Pacific  coast  product.  Washington  deposits 
were  discovered  and  opened  up  in  1916,  and  largely  supplied  the 
market  for  refractory  material  in  1917  and  1918. 

QUALITY   OF   PRODUCT. 

While  the  chief  handicap  to  the  domestic  producers  is  their  distance 
from  the  points  of  consumption,  the  extreme  purity  of  the  product 
also  had  an  important  bearing  on  the  situation.  It  is  commonly 
assumed  that  the  most  refractory  magnesite  is  the  dead-burned 
calcined  form  (either  as  brick  or  in  grains)  containing  little  or  no  lime, 
silica,  iron  oxide,  or  alumina.  Lime  has  a  tendency  to  cause  disinte- 
gration and  also  in  steelwork  may  "become  rotten,"  due  to  absorp- 
tion of  phosphorus  that  should  have  gone  only  into  the  slag.  All  the 
other  impurities  have  a  tendency  to  lower  the  melting  point.  On  the 
other  hand,  there  is  a  decided  preference  among  refractory  users  for 
the  magnesites  that  carry  a  certain  percentage  of  iron  as  do  the  Aus- 
trian and  Hungarian  products.  While  the  small  amount  of  iron 
present  does  lower  the  melting  point  slightly,  brick  and  other  calcined 
products  made  from  it  are  more  satisfactorily  burned  and  hold  their 
shape  better  when  exposed  to  high  temperature.  The  shrinkage  is 
less,  and  less  heat  is  required  for  satisfactory  calcination  than  is  the 
case  with  the  purer  American  material.  In  order  to  meet  this  con- 
dition, at  least  one  of  the  American  producers  has  installed  mixing 
devices  for  adding  iron  ore  to  its  product  prior  to  calcination.1 

Another  feature  that  may  be  mentioned  under  this  head  is  the  prep- 
aration of  the  material.  Even  before  the  war,  Grecian  magnesite 
was  sold  in  California  in  competition  with  the  domestic  product  for 
the  plastic  trade  and  at  a  higher  price.  Discounting  the  prejudice 
or  established  custom  of  calling  for  "Grecian"  magnesite  in  specifica- 
tions, the  greater  diversity  of  forms  and  packages  in  which  the  im- 
ported product  was  available  and  the  fact  that  it  could  be  bought  in 
small  lots  was  a  strong  factor  in  its  continued  sale.  The  domestic 
producers  invariably  sold  only  in  car-load  lots.  Very  little  of  their 
product  was  marketed  in  the  ground  condition  ready  for  use.  On  the 
other  hand,  the  imported  material  was  ground,  of  uniform  grade,  and 
packed  in  paper-lined  barrels. 

i  Two  California  deposits  contain  enough  iron  so  that  magnrsitc  brick  are  made  without  the  addition  of 
that  material.  It  is  claimed  that  eventually  this  purer  American  material  will  be  regarded  as  a  more 
satisfactory  refractory  than  the  Austrian  product. 


THE    MAGNESITE   INDUSTRY. 


19 


IMPORTS. 

COUNTRIES   OF    ORIGIN. 

The  Department  of  Commerce  publishes  the  countries  of  origin  for 
importations  of  calcined  but  not  of  crude  magnesite.  In  general,  it 
may  be  said  that  Greece  furnished  a  larger  proportion  of  raw  magne- 
site before  the  war  than  did  Austria-Hungary.  Raw  magnesite  has  also 
been  imported  quite  steadilyfrom  Canada  in  late  years.  The  irregular 
imports  from  Mexico  and  Venezuela  have  been  mentioned  above,  as 
has  also  the  character  of  the  importations  from  the  various  countries. 

Most  of  the  prewar  importation  of  calcined  magnesite  from  Nether- 
lands, Belgium,  Germany,  and  even  the  United  Kingdom  consisted 
of  reexported  Grecian  "caustic,"  generally  after  calcining  and 
repacking  in  those  countries.  Part  of  the  imports  from  Great  Britain 
(Scotland)  was  of  Norwegian  origin. 

Imports  by  countries, 
MAGNESITE:  CALCINED,  NOT  PURIFIED. 


Imported  from  — 

1910 

1911 

1912 

Pounds. 

Dollars. 

Pounds. 

Dollars. 

Pounds. 

Dollars. 

Austria-Hungary  

203,501,826 
5,437,213 
3,424,636 

919,470 
23,  616 
35,  263 

286,  784,  390 
2,851,020 
5,948,054 
65,  230 

1,  282,  298 
18,474 
59,  608 

667 

198,208,783 
1,  378,  678 
4,819,284 
51,211 
227,276 
325,  760 
123,  192 
467,920 
276,  880 

916,550 
16,600 
52,806 
530 
1,173 
1,893 
1,062 
2,863 
986 

Germany  

Netherlands  

Belgium  

Greece  .  

1,854,161 
55,997 
819,  120 
26,000 

10.547 
356 
7.401 
239 

Norway  

242,716 
5,  560 
591,940 

55,  777 

1,648 
36 
1,726 
533 

TJnitprl  Kingdom  

Canada  

Allother  

Total  

215,  118i  953 

996,  892 

296,544,687 

1,364,990 

205,878,984 

994,463 

1913 

1914 

1915 

Pounds. 

Dollars. 

Pounds. 

Dollars. 

Pounds. 

Dollars. 

Austria-Hungary  

Germany.  .  . 

327,430,519 
4,823,513 
9,015,619 

1,564,234 
40,833 
100,  175 

268,520,275 
5,  156,  102 
8,  380,  349 
22,  310 
6,464,400 

1,298,136 
42,  146 
107,261 
289 
20,070 

104,171,512 
1,444,691 

7,  108,  042 

523,  905 
16,417 
101,513 

Netherlands  

Belgium.  . 

Greece  

3,  208,  176 

17,462 

8,873,777 

47,  511 

Norway  

United  Kingdom  

2,789 
700,  630 

47 
5,097 

26,  508 
808,  650 
115,722 

654 
3,300 
1,351 

560,  563 
1,895,424 
2,641,421 

16,381 
14,  065 
25,  590 

Canada  

All  other 

Total  .  . 

345,181,246 

1,727,848  ;  289,494,316 

1,473,207 

126,695,430 

745,382 

1916                                       1917 

1918 

Pounds. 

Dollars.        Pounds.        Dollars. 

Pounds. 

Dollars. 

Austria-Hungary 

Germany  . 

24,  802 
3,  899,  359 

365 

59,  155 

Netherlands... 

Belgium 

Greece 

22,825,795         136,701 
44,840                fill 
698,100           31,553 
4,879,714  !        54,3X3 

3,584,666          28,032 

Norway. 

22,046 
1,864,794 

21,  608,  707 
4.242 

482 
105,  507 
443,  538 
200 

United  Kingdom  

1,508,424  ,         86,224 
4,296,393          (17,781 

Canada  

All  other... 

Total 32,372,610         282,7(>8         9,448,817 


182,037  |     23,499,789 


549, 727 


20 


THE    MAGNESITE   INDUSTRY. 


QUANTITIES. 

The  proportion  of  magnesite  imported  raw  showed  a  gradual 
falling  off  from  more  than  one-half  the  weight  of  the  magnesite 
imported  as  calcined  in  1902  (the  first  year  for  which  separate  sta- 
tistics are  published)  to  about  one-twelfth  the  weight  of  calcines 
imported  in  the  years  immediately  preceding  the  war — a  natural 
result  of  established  routes  and  the  tendency  to  ship  in  the  lightest 
possible  form.  The  amount  of  calcined  magnesite  imported  in  1914 
was  nearly  150,000  tons,  valued  at  $1,500,000,  or  more  than  five 
times  the  quantity  imported  in  1904.  On  the  other  hand,  the  11,000 
tons  of  raw  magnesite  imported  in  that  year  was  an  actual  reduction 
from  the  annual  importation  a  decade  before. 

When  the  war  first  cut  off  the  importation  of  Austrian  calcines,  a 
much  larger  proportion  of  raw  material  was  imported,  since  no  other 
country  had  sufficient  calcining  facilities  to  immediately  take  care 
of  the  sudden  demand.  Even  some  of  the  Grecian  magnesite  that 
ordinarily  would  have  been  calcined  in  Europe  en  route  was  shipped 
direct  and  the  imports  of  raw  magnesite  from  that  country  greatly 
increased  as  also  did  those  from  Canada  later.  In  1917  the  importa- 
tion of  crude  magnesite  was  the  largest  on  record,  both  as  regards 
quantity  and  value,  amounting  to  nearly  90,000  tons,  valued  at 
$750,000,  or  nearly  nine  times  the  amount  and  sixteen  times  the 
value  of  the  1914  imports.  In  the  fiscal  year  the  imports  of  calcine 
reached  their  minimum — less  than  5,000  tons,  valued  at  only  -$182,000, 
or  less  than  one-thirtieth  of  the  amount  and  about  one-eighth  the 
value  of  the  1914  imports.  In  1918  the  import  restrictions  of  the 
United  States  Shipping  Board  cut  down  the  amount  of  crude  magne- 
site imported  to  one-tenth  that  imported  in  the  previous  year. 
Increased  rail  and  lake  boat  shipments  from  Canada  which  had 
meanwhile  increased  its  calcining  capacity  to  keep  up  with  the 
sudden  increase  in  its  mine  output  resulted  in  more  than  doubling 
the  importation  of  calcined  material. 

REVENUE. 

Since  magnesite  has  always  been  on  the  free  list,  the  Government 
has  never  gained  any  revenue  from  its  importation.  The  imports 
for  consumption  since  1907  are  as  follows: 

Imports  for  consumption. 

MAGNESITE,  CRUDE. 


Fiscal  years. 

Rates  of 
duty. 

Quantities 
(pounds). 

Values. 

T-,   ,.           Value 

»«3-  SSB- 

1907 

Free 

44  648  557 

$156,  722.  00 

$0.004 

1908 

do 

42,  722,  846 

141,  992.  00 

.003 

1909 

do 

20  725  355 

39  558.00 

.002 

1910                 

..  do  

34,  175,  514 

108,  fi23.  25 

.003 

1911 

do 

37,951.190 

127,344.00 

i            .003 

1912 

do  . 

29,415,095 

88,  482.  00 

i            .003 

1913 

do 

33,654  260 

111,271).  00 

...             .003 

1914  
1915                                   

do  
.  .    do  .... 

21,  590,  605 
37,  463,  .509 

46,611.00 
80,  625.  00 

.002 
.002 

1916 

do 

101  591,459 

281,620.00 

.  003 

1917 

do  .  . 

179,  292,  638 

748,951.00 

.004 

1918 

do 

18  532  767 

104,  947.  00 

.006 

THE   MAGNESITE  INDUSTRY. 


Imports  for  consumption — Continued. 
MAGNESITE,  CALCINED,  NOT  PURIFIED. 


Fiscal  years. 

Rates  of 
duty. 

Quantities 
(pounds). 

Values. 

Duties 
collected. 

Value 
per  unit  of 
quantity. 

1907... 
1908  

Free  
...do... 

143,891,572 
140,  860,  775 

$098,  715.  45 
700,  088.  00 

$0.005 
.004 

1909  

do  

186,901,370 

871,383.80 

.005 

1910                                

do  

225,  895,  904 

1,020,982.00 

.005 

1911  

...do  

290,  225,  507 

1,302,120.00 

.005 

1912 

.  do..  . 

204,997,478 

990,241.00 

.005 

1913                                

...do... 

345,322,155 

1,731,443.00 

.005 

1914  

...do  

288,  989,  577 

1,485,273.00 

.005 

1915 

do  

125,  893,  407 

751,706.00 

.000 

191f>                  

...do  

32,  372,  010 

282,  708.  00 

.009 

1917  

do  

9,448,817 

182,037.00 

.019 

1918 

.    do... 

22,704,029 

535,  202.  00 

.024 

PRICES. 

The  price  statistics  for  magnesite  are  somewhat  complicated 
because  of  the  variety  of  grades  and  methods  of  packing.  Except 
for  Austrian  dead-burned  material,  the  different  products  have  not 
been  well  standardized  and  statistics  for  successive  years  are  not 
comparative.  Magnesite  "raw"  and  "calcined"  are  the  only  two 
classes  quoted  in  trade  journals  with  any  degree  of  regularity.  But 
these  quotations  are  nominal  and  rarely  reflect  even  major 
fluctuations. 

Before  the  war,  the  lowest  prices  for  dead-burned  Austrian  magne- 
site were  $15.72  f.  o.  b.  docks  at  Philadelphia,  SI 5.60  f.  o.  b.  New  York, 
and  $15.20  f.  o.  b.  New  Orleans.  These  figures  represent  the  practical 
minimum  prices  that  had  been  reached  in  15  years.  In  rough  figures 
the  average  price  of  calcined  magnesite  along  the  Atlantic  seaboard 
was  $16.25  per  net  ton.  An  approximately  average  freight  rate  from 
Atlantic  points  to  Chicago  was  $2.40  a  ton,  yet  the  lowest  f.  o.  b. 
Chicago  price  quoted  for  the  material  in  1914  was  $26  per  short  ton. 

The  minimum  prewar  price  of  raw  magnesite  was  $8  per  net  ton  or 
the  Atlantic  seaboard  and  was  usually  quoted  higher.  Material 
(Grecian)  calcined  for  medicinal  and  otner  uses  ranged  from  $20  to 
$25  per  ton  according  to  its  purity  and  the  care  that  had  been  exer- 
cised in  sorting.  Fine  ground  calcined  brought  up  to  $35  and  $40. 
Little  information  can  be  gained  by  a  study  of  the  import  valuations 
except  that  they  bear  out  the  fact  that  shipments  from  Europe, 
except  from  the  producing  countries  are  of  material  especially  ground 
and  packed.  Magnesite  from  the  United  Kingdom  has  the  highest 
valuation  ($49.40  per  ton  in  1914),  while  the  Austrian  material  is 
valued  at  $9  to  $10  and  the  Grecian  imports  were  generally  valued  at 
slightly  over  $10. 

The  only  quotations  for  the  domestic  product  before  the  war  were 
in  California.  In  general  they  did  not  differ  greatly  from  the  quota- 
tions for  imported  magnesite  in  the  East.  In  the  early  years  of  the 
war,  San  Francisco  became  the  dominant  market.  Quotations  rose 
from  $22  to  $25  per  ton  for  crude  calcines  in  sacks  and  $40  to  $55  for 
the  ground  product  in  paper  lined  barrels. 


22 


THE   MAGNESITE  INDUSTRY. 


Prices  of  magnetite,  1913. 
[Wholesale,  per  short  ton.] 

NEW  YORK  MARKET. 

Gresian,  Euboean,  calcined  "caustic,"  fine  ground  Cin  paper-lined  barrels) $25. 00  to  $35.00 

Grecian,  E ubosan,  calcined  "caustic,"  not  ground  (in  sacks) 17. 50  to    20. 00 

Grecian,  Euhnean,  crude  (hulk) 7. 00  to     8.00 

Austrian,  calcined,  dead-burned,  crushed  or  fine  ground  (bulk) 16. 15  to    16. 25 

PACIFIC  COAST  MARKETS  (SAN  FRANCISCO  OR  LOS  ANGELES). 

Domestic,  calcined,  "caustic,"  fine  ground  fin  paper-lined  barrels) $30. 00  to  ?35. 00 

Domestic,  calcined,  not  ground,  dead-burned  (in  sacks) 20. 00  to   25. 00 

Norwegian,  calcined ,  dead-burned,  crushed  or  fine  ground 22. 50 


TARIFF  HISTORY. 


Magnesite,  both  crude  and  calcined,  has  been  free  since  1883. 
tariff  history  may  be  tabulated  as  follows: 


The 


Act  of— 

Para- 
graph. 

Tariff  classification  or  description. 

Rates  of  duty, 
specific  and  ad 
valorem. 

1883 

620 

Magnesitc  or  native  mineral  carbonate  of  magnesia 

Free 

1890.   .. 

640 

do 

Do. 

1894  

513 

do  

Do. 

1897. 

i  605 

Magnesite,  crude  or  calcined  not  purified 

Do 

1909  

618 

do. 

Do. 

1913  

539 

do  

Do. 

1  As  passed  by  the  House  of  Representatives  the  provision  read:  "  Magnesite,  or  native  mineral  carbonate 
of  magnesia,  all  not  medicinal."    The  change  to  the  wording  as  enacted  was  made  in  the  Senate. 

COURT  AND  TREASURY  DECISIONS. 

In  a  decision  in  1876,  ground  magnesite,  or  native  carbonate  of 
magnesia,  composed  of  magnesia  47.6  and  carbonic  acid  52.4,  was 
classified  as  carbonate  of  magnesia,  although  differing  in  some 
respects  from  the  more  common  article  known  by  that  name.  (Dept. 
Order,  T.  D.  2875.) 

Calcined  magnesite,  declared  to  have  all  the  characteristic  prop- 
erties of  cement  and  to  be  used  as  a  mortar  in  cementing  magnesite 
bricks,  was  classified  as  cement  under  the  act  of  1883.  (T.  D.  9375.) 

An  importation  described  as  "calcined  magnesite,  or  magnesite 
which  has  been  reduced  to  pulverization  by  heat  and  then  ground," 
and  chiefly  used  as  a  cement  for  lining  furnaces,  was  held  not  within 
the  provision  in  the  act  of  1894  for  "magnesite,  or  native  mineral 
carbonate  of  magnesia,"  nor  gypsum  ground  or  calcined,  but  dutiable 
as  cement  other  than  Roman,  rortland,  or  hydraulic.  (G.  A.  3370, 
T.  D.  16851.) 

A  similar  importation  was  classified  as  cement  by  the  customs 
officers  under  the  act  of  1897,  but  the  Board  of  General  Appraisers 
held  it  exempt  from  duty  as  "magnesite,  crude  or  calcined,  not 
purified,"  a  broader  provision  than  that  in  the  former  law.  (G.  A. 
5003,  T.  D.  23316.) 


THE   MAGNESITE  INDUSTRY.  23 

BIBLIOGRAPHY. 

Mineral  Industry. 

Mineral  Resources:  United  States  Geological  Survey. 

Political  and  Commercial  Control  of  the  Mineral  Resources  of  the  World.  No.  3. 
Confidential  Report  on  Magnesite.  Also  contains  a  good  bibliography. 

Commerce  and  Navigation. 

Engineering  and  Mining  Journal. 

Mining  and  Scientific  Press. 

Canadian  Mining  Journal. 

Magnesite  in  1917.  Reports  and  Data  collected  by  F.  B.  Hyder  for  Northwest 
Magnesite  Co.  (B.  L.  Thane).  Copy  in  U.  S.  Tariff  Commission  file. 

PRODUCERS  IN  1918  AND  CHARACTER  OF  PRODUCT. 

CALIFORNIA: 

Piedra  Magnesite  Co.,  Fresno  (calcined). 

J.  H.  Plattner,  Livermore  (crude). 

Sinclair  Bros.  &  Ferguson,  Piedra  (calcined). 

Bay  Cities  Water  Co.,  Coyote  (crude). 

Western    Magnesite    Development    Co.,   519  California    Street,   San  Francisco 
(crude  and  calcined). 

Gustine  Magnesite  Co.,  Ingomar  (crude). 

Red  Mountain  Magnesite  Co.,  Marine  Building,  San  Francisco  (crude  and  cal- 
cined). 

Standard  Magnesite  Co.  of  California,  244  California  Street,  San  Francisco  (crude). 

E.  Duryee,  1205  Hollingsworth  Building,  Los  Angeles  (crude). 

H.  T.  Had  en,  Dinuba  (crude). 

Oakland  Magnesite  Co.,  Realty  Syndicate  Building,  Oakland  (crude). 

Harker  Magnesite  Co.,  Guerneville  (calcined). 

Fred  Leigh  ton,  Cloverdale  (crude). 

Nichelini  &  McKenzie,  Chiles  (crude). 

J.  D.  Hoff  Asbestos  Co.,  Monadnock  Building,  San  Francisco  (calcined). 

R.  Schiffman,  Pasadena  (crude). 

C.  G.  Gphlin,  St.  Helena  (crude). 

Hugo  Fischl,  Hollister  (crude). 

H.  Sherlock,  Madrone  (crude). 

The  following  were  believed  to  be  operating  at  the  end  of  1918: 

Frank  R.  Sweasy  (White  Rock  mine),  Humboldt  Bank  Building,  San  Francisco 
(crude  and  calcined). 

Wellman-Lewis,  901  Hibernian  Building,  Los  Angeles  (crude  and  calcined). 

Sonoma  Magnesite  Co.,  Humboldt  Bank  Building,  San  Francisco  (crude  and 
calcined). 

Tulare  Mining  Co.,  310  Sansome  Street,  San  Francisco  (crude  and  calcined). 

Porterville  Magnesite  Co.  of  California,  Porterville  (crude  and  calcined). 
WASHINGTON: 

American  Mineral  Production  Co.,  622  Insurance  Exchange  Building,  Chicago, 
111. 

Northwest  Magnesite  Co.,  Hutton  Building,  Spokane. 

(Both  these  companies  are  operating — February,  1919 — and  produce  both 
crude  and  calcined). 

o 


A    001  274  556 


